Mainland China-Hong Kong Economic Integration: Construction of An Index and Applications to Public Policy Research

This research develops a framework that defines and analyses the economic integration of mainland China and Hong Kong. We propose a construction method for the mainland China– Hong Kong economic integration index that measures the development of the economic integration of mainland China and Hong Kong over time. First, we propose the indicators that measure the various aspects of the economic integration of mainland China and Hong Kong. The index of economic integration aims to facilitate policy research and evaluate the long-term and causal relationships between the degree of economic integration and various important economic, social and political issues, including economic growth, unemployment rates, property prices, income disparity, social mobility, satisfaction with the government and ethnic identity.